Loading...
HomeMy WebLinkAbout2008-06-18 Redevelopment Authority MinutesSOUTH BEND REDEVELOPMENT AUTHORITY . REGULAR MEETING 1308 County-City Building June 18, 2008 227 West Jefferson Boulevard 1:30 p.m. South Bend, IN 46601 Presiding: Jose Alvarez The June 18, 2008 Regular Meeting of the Redevelopment Authority was called to order at 1:30 p.m.`by its President, Jose. Alvarez. There was a quorum present. 1. ROLL CALL Members Present: Mr. Jose Alvarez, President Ms. Carolyn V. Pfotenhauer, Vice President Mr. Ray Thomas, Secretary Redevelopment Staff: Mr. Don Inks, Director of Economic Development Mrs. Jenny Hullinger, Recording Secretary Ms. Cheryl Green, Legal Counsel Others Present: Mr. Rich Hill, Baker & Daniels LLC Laura Jones, Intern with St. Joseph Medical Center 2. APPROVAL OF MINUTES a. Approval of the minutes of June 5, 2008 Upon a motion by Ray Thomas, seconded by Carolyn Pfotenhauer, and unanimously carried, the Authority approved the Minutes of the Special Meeting of June 5, 2008. 3, NEW BUSINESS a. Authority approval requested for Resolution No. 164 approving the sale of the South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds of 2008 (Morris Performing Arts Center Project) and approving the execution of an Addendum to the Lease between the Authority and the South Bend Redevelopment Commission for the Morris Performing Arts Center Project and other related matters. Mr. Inks said the bonds did not sell because there were some interest rate issues when they tried to sell the bonds on Tuesday. This item needs to be tabled until the bonds are sold. The Authority tabled the resolution until the bonds are sold. b. Authority approval requested for Proposal for financial consulting services for the South Bend Century Center Bonds of 2008. (Crowe Chizek and Company, LLC) The South Bend Redevelopment Authority June 18, 2008 Meeting Minutes Mr. Inks said we recently approved the bonds for capital improvements for Century Center. We typically hire a financial advisor for the bond process to estimate the revenues, to make sure they are sufficient to cover the bond debt service requirements. Crowe Chizek has worked with the city on a number of projects: The Controller has reviewed the proposal and has approved it. The total fee is $35,000; the proposal lists the services they will perform. Upon a motion by Ms. Pfotenhauer, seconded by Mr. Thomas, the Authority unanimously approved the Proposal for financial consulting services for the South Bend Century Center Bonds of 2008. (Crowe Chizek and Company, LLC) c. Authority approval requested for Resolution No. 169 revising its procedures and the duties of its Officers Ms. Greene said this resolution is in regards to a discussion a couple of meetings ago. Because the Authority did not establish any bylaws when it was formed, Ms. Greene established the duties of the different officers. This resolution will allow one person to sign and one to attest in the absence of the regular signers. Upon a motion by Mr. Thomas, seconded by Mr. Alvarez, the Authority unanimously approved Resolution No. 169 revising its procedures and the duties of its Officers. 4. OLD BUSINESS a. Authority approval requested for Parking Garage Lease with Kite Realty Construction, LLC Mr. Rich Hill brought a copy of the lease that shows the changes that have been made in the lease. The casualty insurance has been changed from two years to five years to rebuild the parking garage if something happened to it. This will minimize the possibility of the parking garage not being able to be rebuilt in the case of something happening to it. The other issue would be the replacement cost of building the garage in the future. The provision has been made for a yearly review with an architectural engineer to make sure there is adequate insurance for the replacement costs. If something occurred and there was still a deficiency, if there is still a shortfall in the casualty insurance for rebuilding the garage. A joinder provision is also in the document with the Mayor and the Board of Public Works to acknowledge that the Mayor would have to come back to the Authority and the Commission and ask that appropriate steps be taken to fund the shortfall if it were to occur. H:\WPDATA\AUTHORTY1061808.MIN.DOC 2 The South Bend Redevelopment Authority June 18, 2008 Meeting Minutes Mr. Hill believes we have covered the interest of the bond holders by special provisions on an annual basis the adequacy of the insurance is insured and second, by extending the lost rental value insurance that covers the period of time for the garage to be rebuilt from two years to five years. We think five years protects any possible contingency that we could think of. The City's interests are well protected because we want a parking garage there. Kite can't complete their financing without the assurance that the garage will be there. Mr. Inks said that should there be a catastrophe and the garage couldn't be rebuilt and the bonds had to be repaid, one of the ways they have worked together with Kite is that they will provide their own casualty insurance policy. This policy will only pay out in the event that within the five years the garage is not able to be rebuilt their policy will provide the cash necessary to rebuild the structure. Because Kite. pushed to extend the insurance to five years, they have agreed to pay half of the insurance. The casualty insurance gets passed on to the Commission. and part of that casualty insurance for the garage will get passed back to Kite for the operating of the garage. The City is always responsible for casualty insurance for a structure that it builds. Upon a motion by Ms. Pfotenhauer, seconded by Mr. Thomas, the Authority unanimously approved the Parking Garage Lease with Kite Realty Construction, LLC 5. NEXT MEETING DATE: July 2, 2008 6. ADJOURNMENT There being no further business to come before the Redevelopment Authority the meeting was adjourned at 1:50 p.m. G/~_ Jose Alvarez, resident D nald I s, Director H:\WPDATA\AUTHORTY\061808.MIN.DOC 3